Question

summarize what Madland claims is "the debate of our times"

Answer 1

According to Madland, an important point of contention is whether increasing growth and reducing inequality in an economy go hand in hand. He says that supply side policies like reducing corporate taxes and subsidizing industrialists will remain important as increasing investment is necessary to sustain growth in the society, which is believed to trickle down to the middle class and the poor. This ideology has been supported by the Republican government as well as some sections of the Democrats. However, the trickle down approach has not practically materialised and subsidizing the rich has only resulted in increasing inequality. This approach has been supported by many political groups. Hence, there is a debate whether to tax the rich more while providing economic incentives and subsidies to the middle class and the poor respectively. While the rich are supposed to invest in business and create jobs, middle class create mass demand for goods and services. Since trickle down from the rich to poor has not been practical, the middle class creates demand. Governments are in a conundrum whether to support supply side policies or demand side policies to create growth and reduce inequality.